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Photographer: Mark Kauzlarich / Bloomberg
Photographer: Mark Kauzlarich / Bloomberg
Tesla Inc. was updated by S&P Global Ratings, putting the company two steps away from investment grade, after a recent sale of shares raised its cash to record levels.
The tester raised Tesla one notch to BB, in line with that of Moody’s Investor Service. S&P assigned a positive outlook, saying there is at least a 33% chance that Tesla could upgrade again in the next year if its competitive advantage “strengthens significantly,” analysts Lawrence Orlowski and Nishit Madlani said in a report on Thursday.
Tesla raised $ 5 billion in a It sold its shares earlier this month to capitalize on a rise in its shares that pushed the company into the S&P 500. It has had five consecutive quarters of earnings and a growing recognition on Wall Street that battery electric vehicles are here to stay. The Palo Alto, California-based company is aiming to deliver 500,000 cars this year, which would be a huge milestone for the 17-year-old company led by CEO Elon Musk.
This is Tesla’s third upgrade during the pandemic, a feat “almost unheard of in the industry,” according to Bloomberg Intelligence analyst Joel Levington.
Read more: Tesla is accelerating towards a high-grade highway at S&P: Credit React
